This paper explores the circular economy and its impact on the fashion industry, with a particular focus on the role of Generation Z in shaping the future of fashion. The circular economy, based on principles of waste reduction, reuse, and recycling, presents a sustainable alternative to the traditional linear economic model. Generation Z, growing up in the digital age and with a high level of environmental awareness, shows significant interest in sustainability and ethics in fashion. Their preferences for second-hand clothing, support for sustainable brands, and activity on social media indicate their potential to drive positive changes in the fashion industry. This paper analyzes how Generation Z uses fashion as a means of expressing identity and promoting social justice, and how their demands for sustainable practices are transforming the fashion industry. The research shows that Generation Z can be a key driver of change towards a more sustainable and ethical fashion industry.